Based on the above and the result of your audit, answer the following(Round off present value factors to four decimal places and final answers to nearest hundred) 5. The interest income to be recognized in 2022 is
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A. Based on the above and the result of your audit, answer the following(Round off present value
factors to four decimal places and final answers to nearest hundred)
5. The interest income to be recognized in 2022 is
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- The Umaasa Company included the following in its notes receivable as of December 31, 2022: Note receivable from sale of land. P1,320,000 Note receivable from consultation 1,800,000 Note receivable from sale of equipment 2,400,000 In connection with your audit, you were able to gather the following transactions during 2022 and other information pertaining to the company's notes receivable: On January 1, 2022, Umaasa Company sold a tract of land. The land, purchased 10 years ago, was carried on Umaasa Company's books at a value of P750,000. Umaasa received a noninterest-bearing note for P1,320,000. The note is due on December 31, 2024. There is no readily available market value for the land, but the current market rate of interest for comparable notes is 11%. On January 1, 2022, Umaasa Company finished consultation services and accepted in exchange a promissory note with a face value of P1,800,000, a due date of…PROBLEM 1: You obtained the following information on the current account of BUGOY CORP. During your examination of its financial statements for the year ended December 31, 2021. The bank statement on November 30, 2021 showed a balance of P918,000. Among the bank credits in November was customer's note for P300,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were cost of checkbooks amounting to P3,600 and a P120,000 check which was charged by the bank in error against Bugoy's account. Also in November you ascertained that there were deposits in transit amounting to P240,000 and outstanding checks totaling P510,000. The bank statement for the month of December showed total credits of P1,248,000 and total charges of P612,000. The Company's books for December showed total debits of P2,206,800, total credits of P1,221,600 and a balance of P1,456,800. Bank debit memos for December were: No. 121 for service…In the process of your examination of the financial statements of the Malu-oy Company for the year ended December 31, 20X6, you obtained the following data on its current account. The bank statement on November 30, 20X6 showed a balance of P76,500. Among the bank credits in November was a customer’s note for P25,000 collected for the account of the company which the company recognized in December among its receipts. Included on the bank debits were cost of checkbooks amounting to P300 and a P10,000 check which was charged by the bank in error against Malu-oy Company account. Also in November, you ascertained that there were deposits in transit amounting to P20,000 and outstanding checks totaling P42,500. The bank statement for the month of December showed total credit of P104,000 and total charges of P51,000. The company’s books for December showed total receipts of P183,900, disbursements of P101,800 and a balance of P121,400. Bank debit memos for December were: No. 14334 for service…
- 1. In connection with the audit of NMD Inc. financial statements, the following data was gathered in connection to its accounts receivable for the year ended December 31, 2019. Accounts Receivable, Jan. 1, 2019 720,000 Allowance for Doubtful Accounts, Jan. 1, 2019 28,800 Sales during the year, all on account, terms 2/10, 1/15, n/60 3,600,000 Cash received from customers 3,840,000 Accounts written off 33,600 An analysis of the cash received from customers during the year revealed that P2,116,800 was received from customers availing the 10-day discount period, P1,188,000 from customers availing the 15-day discount period, P6,840 represented recovery of accounts written off, and the balance was received from customers paying beyond the discount period. NMD's year-end balance of allowance for doubful accounts was estimated to be 5% of the outstanding accounts receivable as of December 2019. How much is the accounts receivable as of December 31, 2019? a.460,800…Use the following information for the next five questions. Presented below are relevant extracts from TIYAGA Company's statement of financial position as of December 31, 2023. Cash and cash equivalents Trade and other receivables Inventories Page 1 of 3- AUDITING AND ASSURANCE: CONCEPTS AND APPLICATIONS 1 ● ● During the course of your audit, you noted the following. Cash and cash equivalents The following were included in Cash and cash equivalents: Customer's check for P100,000 returned by bank on December 29, 2023 due to insufficient fund but subsequently redeposited and cleared by the bank on January 3, 2024. Customer's check for P200,000 dated January 2, 2024, received on December 29, 2023. Cash earmarked for bonds payable due on June 30, 2024, P5,000,000. P1,000,000 of compensating balance against short-term borrowing arrangement at December 31, 2023. The compensating balance is legally restricted as to withdrawal. ● Check written and dated December 29, 2023 and delivered to payee…The following data was extracted from the accounting records of Wise Company: Adjusting journal entries made by Wise after preparing the December bank reconciliation were as follows: Dr. Cash Dr. Bank Service Charges 5.00 Cr. Notes Receivable Dr. Cash Cr. Advertising Expense 1,995.00 Cr. Cash 27.00 Dr. Accounts Receivable 450.00 2,000.00 27.00 450.00 Dr. Bank Service Charges Expense 42.50 Cr. Cash 42.50 Other information: The Balance Per books November 30 was $18,434.27 Deposits in transit at December 31 were $2,145.40 An error made by the bank on the December bank statement was detected. It had charged a cheque written by another bank client (Wiese Company) against Wise Company's bank balance. The Bank has been notified and agrees it is indeed their error. The amount was $30.50 Outstanding cheques were $1,938.53 There were no other reconciling items not reflected above The journal entry for the $450 probably represents: Multiple Choice A deposit made by Wise which was not recorded on…
- Problem 10 You are assigned to assess the collectibility of the receivables carried in the books Goliath Company, your company's audit client. The working trial balance are prepared at December 31, 2021 showed the following balances: Notes Receivable 6,000,000 Accounts Receivable 4,000,000 In the course of your examination, you discovered the following: Notes Receivable from Company A Notes Receivable from Company B 2,000,000 3,000,000 Notes Receivable from Company C 1,000,000 No interest has yet been recorded by Goliath during 2021 on any of the notes above. Company A is undergoing bankruptcy proceedings and has negotiated for a restructuring of its notes receivable. The note was for a four-year period and interest of 10% is collectible annually. All interest accrued before 2021 has been collected. The note matured on December 31, 2021. Collection of Interest was last made on December 31, 2020. The restructuring agreement with Company A calls for annual payment of P550,000 starting…The accountant of Mahoganny Corp. presented to you the following details of its subsidiary ledger in relation to your audit of the company's accounts receivable balance as of December 31, 2014: Invoice Date Amount Customer Zulu Inc. 550,000 1,200,000 950,000 420,000 December 20 December 1 October 11 August 4You obtained the following information on the current account of Par Company during your examination of its financial statements for the year ended December 31, 2021. The bank statement on November 30, 2021 showed a balance of P 306,000 . Among the bank credits in November was customer’s noted for P 100,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were costs of checkbooks amounting to P 1,200 and a P 40,000 check which was charged by the bank in error against Par Company account. Also in November, you ascertained that there were deposits in transit amounting to P 80,000 and outstanding checks totaling P 170,000. The bank statement for the month of December showed total credits of P 416,000 and total charges of P 204,000. The company’s books for December showed total debits of P 735,600 , total credits of P 407,200 and a balance of P485,600. Bank debit memos for December were: No. 121 for service…